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OLYMPIC VALLEY, Calif. — Two major businesses have joined Squaw Valley ski resort in opposing the proposed town of Olympic Valley, citing financial concerns while lending support to current levels of governance.

“We strongly believe that if incorporation of Olympic Valley were approved, the newly created city would ultimately fail, resulting in ramifications that would be felt well beyond Placer County and the Tahoe region,” said Mike Syiek, board president for Squaw Valley Lodge, in a June 9 letter to Placer County Local Agency Formation commissioners.

Syiek also pointed to concerns ranging from lawsuits to the likelihood of a limited pool of capable leaders should Olympic Valley incorporate.

“There are arguments to be made — for and against incorporation — but Squaw Creek is satisfied with its present governance, Placer County, and Squaw Creek has concerns about the financial viability and governance of such a small town,” Sather wrote.

At a June 11 LAFCO meeting, Folsom-based Citygate Associates was awarded a contract to prepare a financial analysis on the proposed town.

“I’m hoping a very thorough and conscious fiscal analysis is done,” said Fred Ilfeld, chair for Incorporate Olympic Valley, the grassroots group pushing for the town’s creation. “... We need to know this to plan for a town and make sure it is fiscally viable.”

According to an earlier analysis commissioned by IOV, the town would be viable by generating $484,000 in annual surplus, based on $4.74 million in revenue — mainly from transient occupancy and property taxes — and $4.26 million in expenses.

While Citygate Associates will work for LAFCO, its analysis will be funded by IOV. The contract is not to exceed $51,750, which includes funding for one alternative analysis.

Citygate Associates estimates the analysis will take five months.

IOV’s proposal is for the town to follow the boundaries of the Squaw Valley Public Service District — which includes the famed Squaw Valley ski resort.

If LAFCO’s analysis indicates Olympic Valley could succeed as a town and it approves incorporation, an election among Olympic Valley registered voters would follow, in which a simple majority — more than 50 percent — must vote in favor for it to become a town.